Yes, this is an issue for those of us who buy things like food in Japan.

Apsara wrote:

A bit less available cash for other things, perhaps.

Yes, we are losing some buying power. Everything will go up in price and my salary has not gone up. I am losing buying power. I will not be homeless anytime soon, but I will save a little less every month.

For those not used to any sales tax, it must have come as a bit of a shock to pay even 5%. What will they or anyone else think about a 10% rate? As with Japan's general attitude, case by case.

Personally, I think it's unavoidable. I have lived in U.S. locations where the sales tax was 4% to 8%. Didn't really affect how I bought things. I simply looked for bargains like everyone else should anyway. Perhaps the biggest influence of this hike will be on tourism, but who knows?

For those not used to any sales tax, it must have come as a bit of a shock to pay even 5%. What will they or anyone else think about a 10% rate? As with Japan's general attitude, case by case.

Personally, I think it's unavoidable. I have lived in U.S. locations where the sales tax was 4% to 8%. Didn't really affect how I bought things. I simply looked for bargains like everyone else should anyway. Perhaps the biggest influence of this hike will be on tourism, but who knows?

Tourism in Japan is pretty small still. The currency exchange is a much bigger factor than the tax rate.

Too bad none of this will go towards paying down Japan's crazy national debt

I think it's pretty straightforward- basically everything, (other than your rent?) is going to cost you 5% more than it did before. A bit less available cash for other things, perhaps.

What about basic groceries (rice, vegetables, fish, chicken)? I know that in some countries, sales tax on groceries is lower (or non-existent) as compared to the normal sales tax rate, since everyone, including the lower class and working class, has to buy groceries.

If it doesn't affect basic groceries, then I'm totally on board with this.

Otherwise...aren't basic groceries expensive enough as it is?

I mean, I'm all on board with finding new sources of revenue to keep the pension system alive... I'm not a big fan of dumping old people in Aokigahara or garotting them like the Hudson Indians... But surely groceries are already expensive enough? Particularly rice... Seriously, in the US, rice costs 1/10th or less of what it costs in Japan...

I can afford a 5% hike. I bank well in excess of 100,000 yen per month after living expenses and taxes. However, for a lower class or working class person making 2,000,000 yen or less per year, man, this is going to hurt.

I think it's pretty straightforward- basically everything, (other than your rent?) is going to cost you 5% more than it did before. A bit less available cash for other things, perhaps.

What about basic groceries (rice, vegetables, fish, chicken)? I know that in some countries, sales tax on groceries is lower (or non-existent) as compared to the normal sales tax rate, since everyone, including the lower class and working class, has to buy groceries.

If it doesn't affect basic groceries, then I'm totally on board with this.

Otherwise...aren't basic groceries expensive enough as it is?

I mean, I'm all on board with finding new sources of revenue to keep the pension system alive... I'm not a big fan of dumping old people in Aokigahara or garotting them like the Hudson Indians... But surely groceries are already expensive enough? Particularly rice... Seriously, in the US, rice costs 1/10th or less of what it costs in Japan...

I can afford a 5% hike. I bank well in excess of 100,000 yen per month after living expenses and taxes. However, for a lower class or working class person making 2,000,000 yen or less per year, man, this is going to hurt.

They need to end subsidies. Instead, to encourage domestic production of agriculture have higher tariffs, and perhaps quotas. As it is now, Japan is really encouraging small and inefficient food stuffs production.

Too many small holders who, I believe get subsidized enough so that they can afford machinery. Ideally, we need to have more medium sized farms, which for mechanization is necessary.

I think it's pretty straightforward- basically everything, (other than your rent?) is going to cost you 5% more than it did before. A bit less available cash for other things, perhaps.

What about basic groceries (rice, vegetables, fish, chicken)? I know that in some countries, sales tax on groceries is lower (or non-existent) as compared to the normal sales tax rate, since everyone, including the lower class and working class, has to buy groceries.

If it doesn't affect basic groceries, then I'm totally on board with this.

Otherwise...aren't basic groceries expensive enough as it is?

I mean, I'm all on board with finding new sources of revenue to keep the pension system alive... I'm not a big fan of dumping old people in Aokigahara or garotting them like the Hudson Indians... But surely groceries are already expensive enough? Particularly rice... Seriously, in the US, rice costs 1/10th or less of what it costs in Japan...

I can afford a 5% hike. I bank well in excess of 100,000 yen per month after living expenses and taxes. However, for a lower class or working class person making 2,000,000 yen or less per year, man, this is going to hurt.

They need to end subsidies. Instead, to encourage domestic production of agriculture have higher tariffs, and perhaps quotas. As it is now, Japan is really encouraging small and inefficient food stuffs production.

Too many small holders who, I believe get subsidized enough so that they can afford machinery. Ideally, we need to have more medium sized farms, which for mechanization is necessary.

Yep, that's precisely what my dad (who worked at the US Department of Agriculture for 30 years) has told me again and again, especially after doing negotiations with the Japanese (and Koreans, who do basically the same thing).